Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

FrodosPet

(5,169 posts)
Thu Mar 27, 2014, 01:13 PM Mar 2014

Cuba builds communism-free zone to woo capitalist businesses

http://www.nbcnews.com/news/other/cuba-builds-communism-free-zone-woo-capitalist-businesses-f2D11650150

HAVANA, Cuba — One country, two systems. The formula has worked for China’s business-minded communists. Can it succeed in Cuba?

President Raul Castro’s government is building its own version of a Chinese-style economic zone on the banks of the Mariel Bay, 30 miles west of Havana, where the laws of scientific Marxism will not apply.

~ snip ~

The zone would lure foreign businesses with the guarantee of a 10-year tax holiday and virtually unfettered freedom to import raw materials and repatriate profits. The Cuban government began accepting bids from international investors this month.

~ snip ~

He also affirmed a promise from Cuban leaders that property within the special zone cannot be expropriated -- a necessary assurance on an island where billions worth of foreign assets were nationalized after Fidel Castro’s 1959 Revolution.

~ snip ~



Castro communism is fighting hard to stay alive. And I don't doubt elements of it will hold on for decades. But piece by piece, chip by chip, as people tire of living in ceaseless destitution, the reforms towards a mixed economy will continue. With great dogmatic reluctance, private investment and initiative are being recognized as indispensable elements of any modern economic system.
22 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Cuba builds communism-free zone to woo capitalist businesses (Original Post) FrodosPet Mar 2014 OP
But the problem with the system rocktivity Mar 2014 #1
Castro communism is fighting hard to stay alive...... dipsydoodle Mar 2014 #2
Have not been there. I hope I CAN go to a free Cuba someday FrodosPet Mar 2014 #3
The country will not be put up for sale dipsydoodle Mar 2014 #5
I found this to be quite illuminating from the perspective I am presenting FrodosPet Mar 2014 #10
Well, considering your lack of experience regarding Cuba, its excusable. Mika Mar 2014 #12
I am open to learning more about Cuba - the land and its people. FrodosPet Mar 2014 #17
"expropriate without compensation anyhow just like 1959" Mika Mar 2014 #7
I am glad to see the expropriations were settled, but the fact remains... FrodosPet Mar 2014 #8
From your link ... Mika Mar 2014 #9
True - They can and will only go so far in changing the old ways FrodosPet Mar 2014 #11
Capital repatriation? Mika Mar 2014 #13
And thus MUST leave 51% in Cuba! That is not what I would call capital mobility FrodosPet Mar 2014 #16
That's because the properties belong to Cuba. Improvements done by Cubans Mika Mar 2014 #18
Off topic, but what a beautiful picture, wall_dish Mar 2014 #20
Here's an article which ran in the Tampa Tribune which echoes your comments, too: Judi Lynn Mar 2014 #15
Cuba is free. That happened on Jan 1 1959 ... Mika Mar 2014 #21
I have. uncommonlink Mar 2014 #4
Speaking of Guantanamo, here's a new story our other media refused to carry: Judi Lynn Mar 2014 #6
Tragic story FrodosPet Mar 2014 #14
If you are here to do a serious thinking exercise, then ... Mika Mar 2014 #19
It makes one wonder if all the rush to claim Cuba is changing is a result Judi Lynn Mar 2014 #22

rocktivity

(44,577 posts)
1. But the problem with the system
Thu Mar 27, 2014, 01:20 PM
Mar 2014

it that it works ONLY for business-minded communists -- AND capitalists -- at the expense of EVERYONE else.


rocktivity

dipsydoodle

(42,239 posts)
2. Castro communism is fighting hard to stay alive......
Thu Mar 27, 2014, 01:24 PM
Mar 2014

You know that having been there or reading comics ?

FrodosPet

(5,169 posts)
3. Have not been there. I hope I CAN go to a free Cuba someday
Thu Mar 27, 2014, 02:23 PM
Mar 2014

I guess if you want to call the Cuban News Agency ( http://www.cubanews.ain.cu/who-we-are ) the comics, a lot of people would not disagree with you.

I try to inform my opinion by reading Cuban press releases. And the other ways that I try to use to understand the political, social, and economic world outside of my immediate physical presence. By visiting news and commentary web sites all across the spectrum. Watching documentaries.

Growing up, yes, I was an American kid with American experiences. But still, I did not just blindly accept what I was told. I was listening to Radio Havana and Radio Moscow (along with other first, second, and third world stations) on the shortwave. I was taught, and I accepted at a very young age that I was never going to know everything about anything, so do the best with what I've got and try to stay open to new facts, no matter how badly they tear up your current beliefs.

But enough about me...any chance of debating the accuracy and/or points about the global market oriented reforms underway in Cuba? Should they be considered and evolution of socialist thought, as opposed to a reversal of it? Or perhaps temporary strategic tacking to rebuild the coffers of the omnipresent state economy ("Hey! Let's get the world to drop a bunch of resources on our shores, and then we will use loopholes to expropriate without compensation anyhow just like 1959&quot ?

dipsydoodle

(42,239 posts)
5. The country will not be put up for sale
Thu Mar 27, 2014, 06:45 PM
Mar 2014

CAMAGÜEY.— The certainty that modifications proposed in the new Foreign Investment Law in no way indicate the sale of the country, or a return to the past, was emphasized here by National Assembly deputies from the provinces of Camagüey, Las Tunas and Ciego de Ávila.

Before analyzing the legal document, the people’s representatives heard a detailed report on the policy to be approved, addressing its contents and the principal changes proposed, presented by Rodrigo Malmierca Díaz, minister of Foreign Trade and Investment.

“Far from indicating a step back, it offers greater guarantees and incentives for foreign investment and ensures the attraction of capital which will contribute effectively to the objectives of sustainable development and recovery of the national economy, which today has a strategic connotation for the country,” the Minister said.

The participation of foreign capital will be oriented toward diversification and expansion of exports, the substitution of imports, modernization, infrastructure construction and new technology, through comprehensive projects which will generate related lines of production.

http://www.granma.cu/idiomas/ingles/cuba-i/20marzo-asamblea.html

I've been twice each time for 3 weeks - no problems going there being English same as for Canadians, Russians , Chinese and the whole of the rest of Europe.

The people maybe be relatively poor but they are also generally contented.

FrodosPet

(5,169 posts)
10. I found this to be quite illuminating from the perspective I am presenting
Thu Mar 27, 2014, 10:01 PM
Mar 2014

"Rodrigo Malmierca emphasized the importance of strengthening aspects of the law which favor foreign investment, support the country’s financial reputation and gain the confidence of investors by providing transparency, clear regulations and incentives."

I'm sorry, but that sounds to me like something that could come out of a middle American Chamber of Commerce press release.

 

Mika

(17,751 posts)
12. Well, considering your lack of experience regarding Cuba, its excusable.
Thu Mar 27, 2014, 10:10 PM
Mar 2014

Cuba is like no other place, right now. Time to put away your preconceptions.

FrodosPet

(5,169 posts)
17. I am open to learning more about Cuba - the land and its people.
Thu Mar 27, 2014, 10:47 PM
Mar 2014

But do I get to at least ask clarifying questions? Can I detail what I've been taught and what I think about what I am reading, and lay it open to analysis?

 

Mika

(17,751 posts)
7. "expropriate without compensation anyhow just like 1959"
Thu Mar 27, 2014, 09:28 PM
Mar 2014

Your comment contains a lie.
Only US based entities haven't received compensation - because US law forbids it.
All other entities that had expropriations and sought compensation have settled w/the gov't of Cuba.

FrodosPet, don't come here to grind your rather uninformed ax. Rather, inform yourself.




The Settlement of Claims for Expropriated Foreign Private Property between Cuba and Foreign Nations Other than the United States
http://www.jstor.org/discover/10.2307/40175493?uid=3739600&uid=2&uid=4&uid=3739256&sid=21103751758957


FrodosPet

(5,169 posts)
8. I am glad to see the expropriations were settled, but the fact remains...
Thu Mar 27, 2014, 09:53 PM
Mar 2014

It is clear the the Cuban government is recognizing that expropriations is bad business, and that is why they are specifically addressing that with the new law.

http://www.reuters.com/article/2014/03/26/cuba-investment-idUSL1N0MN0TJ20140326

~ snip ~

The proposed law includes a clause that bans expropriations except in cases of public interest previously established by the government, in which case investors would be compensated.

~ snip ~

It would also guarantee the free transfer of profits or dividends outside of Cuba without paying additional tax, and allows investment in any sector of the economy except education and healthcare.

~ snip ~

The current law and new law allow for 100 percent foreign-owned companies and do not explicitly exclude Cubans who are citizens of other countries, but in practice Cuba has in most cases insisted on 51 percent ownership of joint ventures and has not allowed Cubans abroad or its own citizens to invest, except in small businesses.

~ snip ~


True or false - is Cuba opening itself up to foreign investment with tax breaks and currency mobility that would cause a mountainous backlash if presented here in the U.S.?

Any chance that someone of a different prospective will discuss these issues as opposed to discussing me? Not that I am not flattered and all, but there are many more important things to talk about than a middle aged news nerd.
 

Mika

(17,751 posts)
9. From your link ...
Thu Mar 27, 2014, 09:57 PM
Mar 2014

I think that the paras you left out answer some questions ...

But the proposed law appears to withhold many of the tax benefits from companies that are 100 percent foreign-owned, instead reserving those incentives for joint ventures with the Cuban state and between foreign and Cuban companies.

The proposed law includes a clause that bans expropriations except in cases of public interest previously established by the government, in which case investors would be compensated.


FrodosPet

(5,169 posts)
11. True - They can and will only go so far in changing the old ways
Thu Mar 27, 2014, 10:07 PM
Mar 2014

Of course they are going to place the most incentives on joint ventures. The key to me, in comparison to the old days, is the fact that they are at least professing to be willing to relax regulations and allow capital repatriation.

 

Mika

(17,751 posts)
13. Capital repatriation?
Thu Mar 27, 2014, 10:12 PM
Mar 2014

What are you talking about?
Foreign companies currently do business in Cuba and repatriate their profits.
If they sell their interest in said improved joint-venture properties, they repatriate 49 percent.




FrodosPet

(5,169 posts)
16. And thus MUST leave 51% in Cuba! That is not what I would call capital mobility
Thu Mar 27, 2014, 10:36 PM
Mar 2014

Perhaps this is a policy that they are attempting to correct? That they are realizing it is a major disincentive for investors?

http://www.cubanews.ain.cu/economy/1040-foreign-investment-a-priority-for-cuban-development

~ snip ~

Experts say that it is also necessary to make some aspects more flexible such as the hiring of labor by implementing a better and more appropriate taxation and salary policy. They also suggest to look at money remittances in terms of foreign financing for the private sector and to draw up a policy linked to this capital flow in favor of foreign investment.
 

Mika

(17,751 posts)
18. That's because the properties belong to Cuba. Improvements done by Cubans
Fri Mar 28, 2014, 01:30 PM
Mar 2014

If the arrangements were so bad then I guess we'd see few joint venture hotels in Cuba. Oh .... wait ...




Judi Lynn

(160,598 posts)
15. Here's an article which ran in the Tampa Tribune which echoes your comments, too:
Thu Mar 27, 2014, 10:20 PM
Mar 2014

U.S. Wary Of Push To Buy Claims To Confiscated Property In Cuba

BILLY HOUSE The Tampa Tribune
Published: June 17, 2008 | Updated: May 18, 2013 at 05:29 PM



WASHINGTON - Estela Roberts and her family have always hoped they would be compensated one day for their property in Cuba seized after that country's 1959 revolution.

Roberts, 62, whose family eventually relocated to Miami and then to Tampa, still remembers her family's beautiful home in Havana, down to the "marble staircase with some ironwork."

Along with a summer home in Tarara, a small sugar plantation, a bank and a tobacco store, the total value of the family's confiscated property has been estimated to exceed $3 million.

Decades later, Roberts and her siblings have yet to receive a dime; frozen relations between the United States and Cuba have prevented their claim from being resolved.

More:
http://tbo.com/news/central-tampa/2008/jun/17/na-speculators-seeking-to-purchase-cuba-claims-ar-132002/

[center]~ ~ ~[/center]
It's been common knowledge, I thought, for ages, even after the thick layer of propaganda whoppers has been in place for so long. I'm would have thought most people saw through most, if not all of it long, long ago!

 

Mika

(17,751 posts)
21. Cuba is free. That happened on Jan 1 1959 ...
Fri Mar 28, 2014, 04:38 PM
Mar 2014

... when the US gov't and mafia backed brutal henchman Batista and his cronies abandoned their palaces and the Cuban people began the process of reconstruction of their sovereignty.

FrodosPet ,when I see comments like "I hope I CAN go to a free Cuba someday" I'm not sure if you're spouting anti Cuba rhetoric, or condemning the US's policy of banning regular travel to Cuba by US citizens and resident aliens.

Usually I know that posters with comments like that have an ax to grind here, but I'm not sure what you are saying in that comment.
Care to clarify?
Thanks.



Judi Lynn

(160,598 posts)
6. Speaking of Guantanamo, here's a new story our other media refused to carry:
Thu Mar 27, 2014, 07:10 PM
Mar 2014

Posted on Monday, 03.24.14
2 Guantánamo guards accused of sexually assaulting junior soldiers

By Carol Rosenberg

crosenberg@MiamiHerald.com


The military is putting two Guantánamo guards on trial in Texas on charges alleging they sexually assaulted junior soldiers at the remote outpost at a time when commanders were grappling with the prison hunger strike, the military said Monday.

The separate courts martial will take place next month by order of Army Maj. Gen. Joseph P. DiSalvo, the commanding officer of Army South, the headquarters unit for personnel activities of soldiers at the U.S. detention center in southeast Cuba.

In one case, 1st Sgt. Richard A. Smith, no age provided, is accused of raping a sergeant in January 2013 as well as sexually assaulting two other women at the base several months later. Smith, described as a reservist from Orlando, was activated to service about 10 weeks before the alleged rape.

Smith also faces charges alleging he bit the neck of one woman, a corporal, and groped another woman for whom no rank was provided, suggesting she was a civilian contractor.

More:
http://www.miamiherald.com/2014/03/24/4015701/2-guantanamo-guards-accused-of.html#storylink=cpy

How exceedingly odd the Miami Herald is the only US paper which carried this story.

FrodosPet

(5,169 posts)
14. Tragic story
Thu Mar 27, 2014, 10:15 PM
Mar 2014

But what is the relevance to Cuban economic reforms via liberalization of foreign investment rules?

I am seriously here to engage in a thinking exercise. To seek out different perspectives and find alternative sources of information.

You follow Latin America quite closely. Can you offer your perspective and perhaps some additional information on this new law? Is it a game changer for Cuba, or just a mild adjustment in the standard operating procedure?

 

Mika

(17,751 posts)
19. If you are here to do a serious thinking exercise, then ...
Fri Mar 28, 2014, 01:40 PM
Mar 2014

... what does your false expropriation settlement conjecture and your "Castro communism is fighting hard to stay alive" commentary have to do with that? Pretty much any comment Judi has on Cuba has more relevance than your uninformed conjecture.

Now, back to the serious thinking ...

Yes, this is a departure from the rigid "centralized Stalinist economy" so many here fantasize - but, post Revolution Cuba has always had a mixed economy. In actuality, it is a tweak. Believe me, if the US's travel sanctions on Americans were to be lifted, there would be hundreds of hotel/resort companies seeking to get in there to do monumental business under whatever terms Cuba sets ... the profits are still there (and, contrary to your conjecture, they can repatriate their profits).

Cheers.

Judi Lynn

(160,598 posts)
22. It makes one wonder if all the rush to claim Cuba is changing is a result
Fri Mar 28, 2014, 06:55 PM
Mar 2014

of recognition that support for the embargo is plunging as the older embargo-supporting population dies away, and they are going to have to face the reality that NO ONE is going to support it very, very soon.

It could actually mean they are trying, as always, to manage public perception, in this case to expect to see things a little different in Cuba when they start going there, than they have been trained to believe they are.

In other words, trying to alter everyone's expectations to avoid being caught as the liars many people already know them to be.

You're right, it has always been a mixed economy since the first day of the post revolutionary period.

Latest Discussions»Region Forums»Latin America»Cuba builds communism-fre...